Pathfinder. They don't hate the elves, they just find them too frail to deserve respect.
Elves on the other hand tend to be racists, but actually commend the dwarves for their craftsmanship and tenacity.

Men call them Dwarves, Mer call them Dwemer, they were an elven clan that resided within the earth. I just consider this particular instance of "Dwarves" not hating elves to be moot, seeing as they are also elves.